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Ihrm Culture

Culture of IHRM

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Culture • • • • – a community’ community ’s set of shared Culture – a assumptions about how the world works and what ideals are worth striving for. Culture can greatly affect a country’s laws. Culture influences what people value, so it affects people’s economic systems and efforts to invest in education. Culture often determines the effectiveness effectiveness of  various HRM practices. Culture • • • Cultural characteristics characteristics influence the ways members of an organization behave toward one another as well as a s their attitudes toward various HRM practices. Cultures strongly influence the appropriateness appropriateness of HRM practices. Cultural differences can affect how people communicate communicate and how they coordinate their activities Cultural environment Dimensions of Culture 1. Globe Project Team 2. Hofstede’s model and 3. Trompenaar’s 7d cultural model An understanding of these models equips international managers with the basic tools necessary to analyse the cultures in which they do business. The three approaches also provide useful theoretical concepts to help understand the nuances of different cultures better. Globe Project  The GLOBE (Global Leadership and Organizational Behaviour Effectiveness) project team comprises 170 researchers who have collected data over seven years on cultural values and practices and leadership attributes from 17,000 managers in 62 countries, covering as many as 825 organizations spread across the globe. The research team identified nine cultural dimensions that distinguish one society from another and have important managerial implications: assertiveness, future orientation, performance orientation, human orientation, gender differentiation, uncertainty avoidance, power distance, collectivism/societal, and in-group collectivism. Assertiveness This aspect is defined as the degree to which individuals in organisations or societies are expected to be tough, confrontational and competitive versus modest and tender. Future Orientation This dimension refers to the level of importance a society attaches to futureoriented behaviours such as planning and investing in the future and delaying immediate gratification. Performance Orientation Performance orientation measures the importance of performance and excellence in society and refers to whether people are encouraged to strive for continued improvement and excellence. Human Orientation Human orientation is understood as the degree to which individuals in organisations or societies encourage and reward people for being altruistic, generous, caring and kind to others. Gender Differentiation This is understood as the extent to which an organization or society resorts to role differentiation and gender discrimination. In-group Collectivism This refers to the degree to which individuals express pride, loyalty and cohesiveness in their organisations or families. Collectivism/Societal This refers to the degree to which organisational and societal practices encourage and reward collective distribution of resources and collective action. Power Distance This refers to the degree to which organisational members or citizens of a society expect and agree that power should be unequally distributed. Uncertainty Avoidance This refers to the extent to which members of an organisation or society strive to avoid uncertainty by relying on social norms, rituals and bureaucratic practices to minimize the unpredictability of future happenings. GLOBE’s ranking is highly helpful to international managers who are seeking to be successful in cross-cultural settings. Anticipating cultural similarities and differences allows multi-cultural managers to develop the behaviours and skills necessary to act and decide in a manner appropriate to the host country norms and expectations. Hofstede’s Cultural Dimensions In a discussion on multicultures, reference should be made to the pioneering work done by the Dutch scientist, Geert Hofstede. He identified five cultural dimensions around which countries have been clustered, with people in each group exhibiting identical behaviours. The four dimensions are: 1. 2. 3. 4. 5. power distance, uncertainty avoidance, individualism and masculinity. Long/Short term orientation Power Distance Power distance is the extent to which less powerful members of institutions and organisations accepts that power is distributed unequally. Countries in which people blindly obey the orders of  superiors have high power distance. High power distance countries have norms, values and beliefs such as:Inequality is fundamentally good, Every one has a place; some are high, some are low, Most people should be dependent on a leader, The powerful are entitled to privileges and The powerful should not hide their power. • • • • • High Power v/s Low Power countries The US, Austria, Ireland, Norway and New Zealand represent cultures with low power distance. These societies exhibit characteristics almost the opposite of the features listed above. France, India, Singapore, Brazil, Mexico and Indonesia are examples of  societies with a high power distance. Uncertainty Avoidance Uncertainty avoidance is the extent to which people feel threatened by ambiguous situations and have created beliefs and institutions that try to avoid these. Countries with citizens who do not like uncertainty tend to have a high need for security and a strong belief in experts and their knowledge. Countries with low uncertainty avoidance have people who are more willing to accept that risks are associated with the unknown and the life must go on in spite of this. Specifically, high uncertainty avoidance countries are characterised by norms, values and beliefs which accept that: Conflict should be avoided, Deviant people and ideas should not be tolerated, Laws are very important and should be followed, Experts and authorities are usually correct and Consensus is important • • • • • Low uncertainty avoidance societies tend to represent the antonym of the above characteristics. Individualism Individualism is the tendency of people to look after themselves and their family only. Individualism is common in the US, Canada, Australia, Denmark and Sweden. Specifically, countries high on individualism have norms, values and beliefs which accept that: People are responsible for themselves, Individual achievement is ideal and People need not be emotionally dependent on organisations or groups. • • • In the individualist societies, favoritism shown to friends and relatives is considered to be unfair and even illegal. Masculinity Masculinity refers to a situation in which the dominant values in a society are success, money and other material things. Hofstede measured this dimension on a continuum ranging from masculinity to femininity. High masculine cultures have norms, values and beliefs that: Gender roles should be clearly distinguished, Men are assertive and dominant, Machismo or exaggerated maleness is good, People – especially men - should be decisive, Work takes priority over other duties, such as family and Advancement, success and money are important. • • • • • • Long /short term orientation • Suggests whether the focus of cultural values is on the future (long term) or the past and present (short term). Trompenaar’s Framework Trompenaars, an European researcher, conducted an extensive research with 15,000 managers from 28 countries, representing 47 national cultures. He describes cultural differences using seven dimensions (the theory is therefore called 7d cultural dimensions model): (i) (ii) (iii) (iv) (v) (vi) (vii) universalism versus particularism, individualism versus collectivism, specific versus diffuse, neutral versus affective, achievement versus ascription, past versus present (time dimension), and internal versus external control THE 7D MODEL OF CULTURE CULTURAL DIMENSION Relationships with People: Universalism vs. particularism Individualism vs. collectivism Specific vs. Diffuse Neutral vs. Affective Achievement vs. Ascription Perspective on Time: Sequential vs. Synchronic Relationship with the Environment: Internal vs. External Control CRITICAL QUESTION Do we consider rules or relationships more important? Do we act mostly as individuals or as groups? How extensively are we involved with the lives of other people? Are we free to express our emotions or are we restrained? Do we achieve status through accomplishment or is it part of our situation in life (e.g., gender, age, social class)? Do we do tasks in sequence or several tasks at once? Do we control the environment or does it control us? (i) Universalism versus Particularism In cultures with universalistic orientation, people believe in abstract principles such as the rules of law, religion or cultural principles. In universalistic cultures, the focus is more on formal rules than on relationships; business contracts are adhered to very closely and people believe that a ‘deal is a deal’. In a particularistic culture, legal contracts are adhered to very closely and the way, deals are executed also changes depending on the situations. (ii) Individualism versus Collectivism This dimension is almost identical to Hofstede’s value dimension. In individualistic societies, the focus is on “I” or “me” and the orientation is one’s own growth. In collectivist societies, the focus is on groups, including family, organisation and community. Responsibility, achievements and rewards are group-based. In individualistic societies, people are trained from childhood to be independent, and each person assumes individual responsibility for his/her success or failure. (iii)Specific versus Diffuse This cultural dimension focusses on how a culture emphasizes on notions of privacy and access to privacy. In specific cultures, individuals have large public spaces and relatively small private spaces. While the public space is open, the private one is guarded carefully and shared with only close friends and associates. A diffuse culture does not allow any distinction between public and private spaces. (iv) Neutral versus Affective In this dimension, Trompenaars focusses on the appropriateness of expressing emotions in different cultures. In neutral cultures, the tendency of the people is to control their emotions so that it will not interfere with their judgement. In contrast, effective cultures encourage the expression of emotions. Expressions of anger, laughter, gesturing and a range of emotional outbursts are considered normal and acceptable. But in neutral societies, emotions are considered to be messy interference in achieving objectives. (v) Achievement versus Ascription This dimension describes the methods used to acquire status. In an achievement culture, an individual is accorded status based on how well he/she performs his/her functions. Status depends on achievement. An ascription culture is one in which status is attributed based on who or what a person is, his age, gender or social connections. Achievement is not the criterion to accord status. (vi) Time Dimension Time orientation has two dimensions. The first dimension of  Trompenaars is similar to Hofstede’s  – there are different emphasis on the past, present and future. The second refers to sequential versus spectronic cultures. This dimension is unique to Trompenaars. In sequential cultures, time is viewed as linear and divided into segments that can then be divided and scheduled. The followers of sequential cultures tend to do only one activity at a time, keep appointments strictly and show a strong preference for following plans as they are laid out and not deviating from them. US, Mexico and France tend to follow sequential cultures. In synchronic cultures such as Portugal and Egypt, time is viewed as circular and indivisible, and relationships are more important than schedules. (vi) Internal versus External Control  The final cultural dimension of Trompenaars relates to one’s locus of control  – his belief about whether he or she is the master of his or her own destiny. Where individuals (read managers) believe that they have control over outcomes, they are said to be followers of internal locus of control. Instead, if  they believe that they have control over the outcomes, such people (managers) deem to follow the tenets of external locus of  control.